Content area
Current research on industrial purchasing has overlooked the strategic aspects of buying and concentrated on more operational and structured buying processes. Mintzberg, Raisinghani, and Theoret's (1976) model for unstructured decision making is employed to analyze 5 cases of strategic purchasing processes concerning production materials. Descriptive flow models are generated for each case. The analysis reveals several important differences between strategic and operational decision-making systems: 1. The search for effective solutions involves several loops in the strategic decision-making process, while the operational purchase process is more linear. 2. Strategic decision making is primarily iterative, while operational decision making is incremental. 3. Strategic purchasing decisions involve more company employees than operational decisions. 4. In strategic situations, purchasing is primarily a gatekeeping function, while in operational situations most important activities are performed by purchasing managers. Implications for purchasing and marketing management are discussed.